Everyone wants to enjoy their retirement years. However, many seniors face money issues at some point. Here are five financial planning strategies that can help seniors make the most out of their golden years.
1. Create a Budget
The first thing you and your aging loved one should do is create a comprehensive budget. You may not be able to help with your parent’s finances unless you know exactly where the money is going. The budget must include all sources of income and every expense incurred. In addition to necessities like food and utilities, you also need to keep track of how much your loved one spends on entertainment and other nonessentials.
Preparing a budget for a parent can be a challenging task, especially if you have other important duties to tend to. Families who need help caring for senior loved ones can turn to Home Care Assistance, a leading provider of in-home care. Services available in our customizable care plans include meal prep, mental and social stimulation, assistance with personal hygiene tasks, and much more.
2. Set Realistic Financial Goals
When creating a budget for your loved one, set realistic financial goals. If your parent doesn’t have an emergency fund, the first goal should be saving up a little bit of money. Sudden expenses may pop up, and your loved one needs to be able to cover them without using a credit card. Having a few thousand dollars in a savings account can give your loved one peace of mind.
3. Start Reducing Monthly Expense
Many seniors pay for dozens of services, subscriptions, or programs they never use. Once every month or two, take a close look at your loved one’s bank statement to see where the money is going. You can then cancel any services or subscriptions he or she no longer uses.
4. Be on the Lookout for Financial Fraud
Older adults are often targeted by scammers. Teaching your loved one about some of the most common scams can drastically reduce the risk. You should also add your loved one’s phone number to the Do Not Call Registry and place a “No Soliciting” sign on the front door.
Older adults require more than just financial security to enjoy a happy and healthy life. If your elderly loved one needs help maintaining a high quality of life while aging in place, reach out to Home Care Assistance, a trusted provider of Oshkosh senior home care. Our caregivers provide transportation to and from medical appointments and social events, nutritious meal preparation, assistance with daily exercise, and help with everyday tasks like bathing, grooming, and light housekeeping.
5. Prepare for Possible Cognitive Decline
Cognitive decline is a natural part of the aging process, and getting ready for those changes could help your loved one avoid some major financial issues. At the very least, you should consider creating a power of attorney document for your parent. Setting up a joint account might seem like an easier option, but you could be responsible for paying off your loved one’s debts when he or she passes away if your name is attached to the account.
Planning a parent’s finances can be a difficult task for an overworked caregiver. Families who find it difficult to care for their aging loved ones without assistance can benefit greatly from professional respite care. Oshkosh, WI, family caregivers who need a break from their caregiving duties can turn to Home Care Assistance. Using our proprietary Balanced Care Method, our respite caregivers can encourage your loved one to eat well, exercise regularly, get plenty of mental and social stimulation, and focus on other lifestyle factors that promote longevity. Whether your parent needs hourly or live-in care, give us a call at (920) 573-6295 today.